After serving 100+ clients to increase company revenue, it is clear to me that a fundamental principle of business growth is often ignored by companies of all sizes when looking to scale their business.
Although this is the part when many would roll their eyes and say ‘no sh*t Sherlock’, there is a big difference between knowing the above and deeply understanding that it drives major decisions in your organisation.
To make this point more clear, check if you currently know the answers to the following questions:
In my experience when asking these questions I am normally left with unsure answers which backs up the claim that although most people understand the value of retention, it is not a priority in their organisation and therefore the number one driver of growth is not a priority.
Ok so how do I start knowing my customers better?
The first step would be to ensure you have the internal infrastructure in place to get this information and action it on a regular basis. Like with everything, first it is about setting the foundations and then building from there.
In case of customer retention, the first step is to get a customer relationship management system (CRM) in place.
For those who do know what CRM is, it is technology for managing all your company’s relationships and interactions with customers and potential customers. The goal is simple: Improve business relationships. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability.
For those who do not have a CRM in place, this should be treated as an urgent task as the longer you don’t take action, the less likely your customers are to grow.
We achieved a 300% returning sales increase for Nespresso
Nespresso Malta approached ANCHOVY. to increase customer retention for their coffee pod product line which are used by their coffee machine owners. ANCHOVY. & Nespresso team went down the following steps:
1. We segmented customers into three main segments: One time buyers, average customers and top 20% customers
Each segment has its own workflow which specific actions that provide most value to users’ needs. For example:
The top 20% customers love Nespresso coffee pods and finish their average on order in approximately 4 weeks. We therefore prompt these users with free 24 hour delivery for their usual order size and preferred flavours four weeks after each purchase.
This was recreated for average customers and one time buyers. We found the right offer at the right time for each customer persona.
3. Find the preferred channel per customer
Once we have an offer that is wanted by each segment, we begin finding the preferred channel per customer and tested the following: WhatsApp, Email, SMS and Phone calls
Customers are now receiving personalised offers, and suitable times though their preferred medium of communication. This increased Nespresso sales by 300% within 30 days a year long partnership.
To do the same for your business, book a free 3 hours consultancy session with ANCHOVY. Powered by the Malta Enterprise Grant.
Andrew Borg Costanzi
Head of Growth
Fact: I take a daily ice cold shower.